2020 RATE STUDY RECYCLED & RECHARGE WATER RATES€¦ · Revenue Requirements Analysis. 5. 1.2...

Inland Empire Utilities Agency

2020 RATE STUDY RECYCLED & RECHARGE WATER RATES

DRAFT | DECEMBER 2019

Carollo Engineers, Inc. 3400 Central Avenue, Suite 205 • Riverside, California 92506 • P. 951.776.3955 • F. 951.776.4207 carollo.com

RECYCLED AND RECHARGE WATER RATES | 2020 RATE STUDY | IEUA

DRAFT| DECEMBER 2019 | i

Contents

Section 1 – Introduction 1

1.1 Current Rate Structure 2

1.1.1 Recycled Water Direct Use Service 3

1.1.2 Recharge Water Service 3

1.2 Direct Use and Recharge Demand 4

1.2.1 Historic Demand 4

1.2.2 Projected Recycled and Recharge Water Demand 4

– Revenue Requirements Analysis 5

1.2 Recycled and Recharge Water Program Costs 5

2.1.1 Recycled Water Direct Use Costs 6

2.1.2 Recharge Water Costs 6

2.2 Transfers 7

2.3 Offsetting Revenues 9

2.4 Projected Revenue Requirements 11

2.4.1 Recycled Water Revenue Requirement 11

2.4.2 Recharge Water Revenue Requirement 12

– Rate Design 13

3.1 Current Structure Rates 13

3.1.1 Proposed Recycled Water Direct Use Rate 14

3.1.2 Proposed Recharge Water Rate 14

3.2 Potential Fixed Charges 15

3.2.1 Fixed Charge Expenses 15

3.2.2 Alternative 2: Three-year Rolling Average Demands 17

3.2.3 Alternative 3: Number of EDUs 18

3.2.4 Alternative 4: Three-year Rolling Average Demands and Number of EDUs 19

3.2.5 Alternative 5: MEUs and EDUs 21

3.2.6 Fixed Charge Revenue Comparison 22


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Appendices

Appendix A Historic and Projected Demands

Appendix B Financial Projections

Appendix C Capital Projects

Tables

Table 1 Adopted Recycled and Recharge Water Rates 4

Table 2 Recycled Water Expenses Summary 6

Table 3 Recharge Water Operating Expenses 7

Table 4 Recycled Water Fund Transfers ($ millions) 8

Table 5 Recharge Water Fund Transfers ($ millions) 8

Table 6 Offsetting Operating Revenues ($ millions) 9

Table 7 Offsetting Non-Operating Revenues 10

Table 8 Use of Connection Fees 10

Table 9 Required Recycled Water Direct Use Rate Revenues 12

Table 10 Required Recharge Water Rate Revenues ($ millions) 13

Table 11 Proposed Recycled Water Direct Use Rate ($/AF) 14

Table 12 Proposed Recharge Water Surcharge Rate ($/AF) 14

Table 13 Direct Use Fixed Charge Revenue Requirement 16

Table 14 Direct Use Variable Revenue Requirement 17

Table 15 Total Recycled and Recharge Water Three-Year Rolling Average Demands 17

Table 16 Alternative 2 FY 2020/21 Fixed Revenue Allocation Example 18

Table 17 Alternative 2 Fixed Revenues by User 18

Table 18 Alternative 3 EDUs by User and Projected Share of Fixed Charge Revenue

Requirement 19


Table 20 Fixed Revenue Requirements Allocated Based on Debt 20

Table 21 Alternative 4 FY 2020/21 All Recycled Water Use Fixed Revenue Allocation

Example 20

Table 22 Alternative 4 FY 2020/21 Recharge Water Fixed Revenue Allocation Example 21



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Table 24 Alternative 5 Recycled Water MEUs by User and Projected Share of Fixed Charge

Revenue Requirement 22


Table 26 FY 2020/21 Total Revenue Calculation Example 23

Table 27 FY 2020/21 Total Recycled Water Revenue by User, Direct and Recharge 23

Table 28 Five Year Average Revenue Comparison, User Percent Share of Total Revenues 24

Figures

Figure 1 Recycled and Recharge Water Demands (AFY) 5

Figure 2 Percent of Total Recycled and Recharge Fixed Charge Revenues, by User 24


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Abbreviations

AF acre-feet

AFY Acre-Feet per Year

Carollo Carollo Engineers, Inc.

CBWCD Chino Basin Water Conservation District

CIP Capital Improvement Plan

FY Fiscal Year

GG General Administrative Fund

IEUA or Agency Inland Empire Utilities Agency

IRP Integrated Water Resources Plan

MGD million gallons per day

MWD Metropolitan Water District of Southern California

O&M operations and maintenance

RC Wastewater Regional Capital Fund

RRWDS regional recycled water distribution system

RW Recharge Water Fund

RWPS Recycled Water Program Strategy

SBCFCD San Bernardino County Flood Control District

Watermaster Chino Basin Watermaster

WC Recycled Water Fund

WW Water Resources


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Section 1 – Introduction The Inland Empire Utilities Agency (IEUA or Agency) is a public agency serving the Inland Empire

region of Southern California as a regional wastewater agency, as well as a wholesale supplier of

imported and recycled water. The Agency contracted with Carollo Engineers, Inc. (Carollo) to

conduct a Water, Recycled Water, and Wastewater Rate and Connection Fee Study for the

regional wastewater and water systems. This report details the purpose and cost basis for

updating the Agency’s Recycled Water Direct Use and Groundwater Recharge Rates. The

analysis discussed in this report provides the support for an update to those rates to be

implemented in Fiscal Year (FY) 2020/21 effective July 1, 2020. The proposed FY 2020/21 rates

will be updated to reflect the projected revenue requirements for FY 2020/21 through FY

2024/25, and present two alternatives: 1) Maintaining current rate structure comprised of a

variable recycled water rate per acre-feet1 (AF) for direct use, and a recharge water surcharge

rate per AF, and 2) proposing a combination of the current variable component for direct use and

recharge along with a fixed charge component to recover a portion of revenue requirements.

IEUA supplies water to retail agencies through both imported water supplied by the

Metropolitan Water District of Southern California (MWD) and recycled water. Costs associated

with imported MWD water deliveries are recorded in the Water Resources fund. Costs associated

with recycled water deliveries for direct use are recorded in the Recycled Water Fund (WC), and

recharge deliveries in the Recharge Water fund.

In 2000, IEUA and its contracting agencies identified recycled water use as a critical component

in drought-proofing the region and maintaining its economic growth. With imported water rates

increasing and long-term imported supply reliability in decline, the region committed to

aggressively and proactively develop local water supplies to offset these impacts.

IEUA, in partnership with its contracting agencies and Chino Basin Watermaster (Watermaster),

invested over $600 million in water recycling, conservation, recharge improvements, the MWD

groundwater storage and recovery projects, the Chino Desalter, and other water management

programs. These programs collectively reduce the region’s need for imported water, especially

during drought or conditions when imported water supplies may not be available. In addition to

the region switching large potable water users to recycled water, IEUA and Watermaster

obtained a landmark permit in 2005 for groundwater recharge using IEUA’s high-quality recycled

water. The use of recycled water provides a high-quality alternative water source to the Agency,

its seven member agencies (Cities of Chino, Chino Hills, Fontana, Montclair, Ontario, Upland,

and Cucamonga Valley Water District), commercial customers, and recharge basins for

groundwater storage which helps to improve the resiliency of the region’s water supply.

1 An acre-foot of water is equal to 325,900 gallons of water, the equivalent of filling one acre one foot deep with water.


2 | DECEMBER 2019 | DRAFT

Due to the increasing need for reliable water supplies and for additional supplies to meet the

needs of future growth, IEUA will continue to invest in localized water supplies. These

investments are based on the 2015 Recycled Water Program Strategy (RWPS) which updated

the 2005 Recycled Water Implementation Plan and the 2007 Recycled Water Three Year

Business Plan. The primary objective of the RWPS is to prioritize projects to maximize the

beneficial use of recycled water throughout the year accounting for changes in the region’s

water resource priorities due to increased water use efficiencies. These projects are integrated in

the Agency’s long-term planning documents including; the capital improvement plan (CIP) and

long-term (20-year) capital outlook based on the 2015 Integrated Water Resources Plan (IRP).

IEUA and contracting agencies also affirmed the Recycled Water Policy Principles in 2015 to

guide investment of any remaining significant system improvements. One of these principles is

to “maintain a financially viable recycled water program with rates that incentivize use of all

available recycled water and that provide funding to achieve full cost-of-service for the recycled

water program”.

The proposed FY 2020/21 Recycled and Recharge Water Rates reflect the capacity needed to

serve each customer, and support IEUA’s recycled and recharge programs consistent with the

2015 RWPS. The Recycled Water fund accounts for revenues and expenses related to operations

and maintenance for distributing recycled water from the Agency’s four recycling plants to direct

users, CIP costs, debt service costs, and a portion of the groundwater recharge activities not

covered by the reimbursement agreement with Watermaster. The Recharge Water fund

accounts for revenues and expenses associated with groundwater recharge operations and

maintenance. The recharge program is a joint effort between the Watermaster, the Chino Basin

Water Conservation District (CBWCD), the San Bernardino County Flood Control District

(SBCFCD), and IEUA.

1.1 Current Rate Structure

IEUA’s current rate design consists of a variable recycled water rate per AF, and a recharge water

surcharge rate per AF, entirely commodity based. Revenues generated under the current rate

design vary from year to year based on the volume of recycled water delivered, primarily due to

weather conditions.

The 2015 Rate Study conducted by Carollo considered other rate alternatives to facilitate

revenue stability and lessen the fiscal impact of reduced deliveries. One alternative proposed in

2015 included a fixed charge based on either an account or meter equivalent basis. Following an

extensive review with member agencies, no consensus was reached on a fixed charge

component and the existing commodity-based rate design was maintained with no fixed

component.

This analysis will evaluate and develop rates for FY 2020/21 through FY 2024/25 based on the

current commodity based structure, as well as the change in recycled water sales trends since

the adoption of the IEUA resolution (2016-6-17) unanimously requested and approved by IEUA

and regional contracting agencies establishing regulations for the purchase of recycled water

above base entitlement and the addition of a fixed component to recover debt service costs not

affected by volumetric fluctuations from year to year.

The recycled and recharge water rates were designed to recover the costs of the Recycled Water

direct use and Recharge costs not covered by the reimbursement agreement with Watermaster.



As wholesale service charges to other agencies and entities, IEUA’s direct use and recharge rates

need to meet the requirements of Article XIII of the California Constitution as amended by

Proposition 26. The rates are considered to be fees for a specific service and are therefore

exempt from the approval requirements of taxes, however, the rates charged must be

proportional to the specific level of service provided to each user to maintain that status. As

stated in Article XIII, the rates must be: “A charge imposed for a specific government service or

product provided directly to the payor that is not provided to those not charged, and which does

not exceed the reasonable costs to the State of providing the service or product to the payor.” To

meet these requirements, it is important that the rates appropriately recover costs from each

user, establishing a nexus between the level of service that each user receives and the fees or

rates that they are charged.

1.1.1 Recycled Water Direct Use Service

IEUA owns and operates five water recycling treatment facilities, four of which produce recycled

water. These facilities receive an average of 53 million gallons per day (MGD) of wastewater from

its member agencies which is treated to Title 22 regulations set forth by the California Division of

Drinking Water and State Water Resources Board.

IEUA currently collects rate revenue for recycled water direct use deliveries on a commodity, or

volumetric basis. As of July 2019, the direct use rate is $490 per acre-foot delivered. IEUA

provides service to member agencies, as well as direct use service to irrigation and industrial

customers. Rates are collected completely on a commodity basis and are intended to recover

operation and maintenance (O&M) expenses, capital project costs benefitting existing users/uses

and which are not allocated to support future growth, debt service costs, as well as a portion of

groundwater recharge O&M costs not reimbursable by Watermaster.

1.1.2 Recharge Water Service

In addition to the direct use deliveries, IEUA recharges up to 50,000 AF of imported water from

northern California, between 15,000 and 25,000 AF of stormwater, and between 10,000 and

15,000 AF of recycled water. Annual recharge varies due to weather patterns and the availability

of supplemental water supplies (imported and recycled water). In partnership with Watermaster,

CBWCD, SBCFCD, the Agency currently operates 19 recharge basins throughout the Chino

Basin.

The current rate for recharge deliveries of recycled water to various groundwater basins is

$550 per AF as of July 2019. The recharge water rate is the combination of the $490 per AF

recycled water direct use rate with a $60 per AF surcharge added to recover costs associated

with the operation and maintenance of the recharge basins not reimbursable by Watermaster.

Similar to the recycled water direct use rate, the recharge water rate is collected entirely on a

commodity basis with no fixed component. Table 1 shows adopted Recycled and Recharge

Water Rates through FY 2019/20.



Table 1 Adopted Recycled and Recharge Water Rates

Fiscal Year (FY)

Recycled Water Direct Use Rate ($/AF)

Recharge Water Surcharge Rate ($/AF)

Total Recharge Water Rate ($/AF)

FY 2015/16 $350 $60 $410

FY 2016/17 $410 $60 $470

FY 2017/18 $470 $60 $530

FY 2018/19 $480 $60 $540

FY 2019/20 $490 $60 $550

1.2 Direct Use and Recharge Demand

1.2.1 Historic Demand

A key objective of the 2015 Rate Study was to set rates that fully recovered program costs. The

rates implemented for the Recycled Water and Recharge Water funds were based on projected

demand for recycled direct use and recharge water deliveries. The volume of recycled water

delivery of direct use and groundwater recharge can vary seasonally and annually based on a

variety of factors (e.g. rainfall intensity, rainfall duration, and recharge basin maintenance

activities. As presented in Figure 1, actual deliveries for the last four fiscal years were

significantly lower than projected primarily due to significant changes in recycled water sales

trends following the adoption of the resolution (2016-6-17) establishing regulations for the

purchase of recycled water above base entitlement and delays in groundwater recharge projects,

and recycled water capacity improvement projects. The high precipitation this past winter

season also resulted in lower recycled water deliveries in FY 2018/19.

Lower than expected demands since the 2015 Rate Study have led to decreased direct usage and

recharge surcharge revenues. These revenue shortfalls, in part, drive the need for the rate

increases proposed by this study and the exploration of alternative methodology to recover

costs. The volumetric projections of this study take a more conservative approach than the

previous study to mitigate the potential for revenue shortfalls.

1.2.2 Projected Recycled and Recharge Water Demand

The total amount of recycled water for direct use and groundwater recharge is used to

determine the $/AF rate imposed on recycled and recharge water customers. Current recycled

and recharge water demands were provided by the Agency, and demand projections were

calculated in cooperation with Agency staff. Figure 1 illustrates the forecasted recycled and

recharge water demand from FY 2020/21 through FY 2024/25.

A modest increase in demand is expected through the end of the study period in FY 2024/25.

Recycled water direct use demand is projected to increase from 22,500 AF in FY 2020/21 to

23,000 AF in FY 2024/25, an annualized growth rate of 0.9 percent. Recharge water demand is

projected to increase from 14,000 AF in FY 2020/21 to 15,000 AF in FY 2024/25, an annualized

growth rate of 1.7 percent.

Historic and projected demands for each user are included for reference in Appendix A.



Figure 1 Recycled and Recharge Water Demands (AFY)

The overall demand forecast is consistent with the analysis for the one water connection fee and

was used along with historical direct use and recharge demands to project demands for each

user. Future demands for each user are projected based on the Agency’s overall recycled water

demand projections and each user’s demands over the past three years.

– Revenue Requirements Analysis The findings and results presented in this report represent the first draft of the Recycled and

Recharge Water Rate analysis. IEUA may continue to refine the rate calculations as additional or

new data becomes available and based on feedback from the member agencies and other

stakeholders.

1.2 Recycled and Recharge Water Program Costs

Recycled Water Program and Recharge Water Program costs were projected through FY 2024/25

based on current costs and typical cost escalation factors. The projections also consider any

specific increases or decreases in costs that the Agency expects over the rate study period.

Appendix B provides details for O&M budget line-items. As reported in Appendix B, some

program costs, such as debt service costs, tend to be fixed in nature and do not change

significantly based on the quantity of recycled water delivered. Some expenses, such as utilities,

can vary based on the volume delivered.

18,856 18,888 20,684 16,118

13,222 13,934 13,510

11,542

22,000 22,500 22,500 22,500 22,500 23,000

13,800 14,000 14,200 15,000 15,000 15,000

35,150 37,100 37,300

42,950 45,770

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

FY2015/16

FY2016/17

FY2017/18

FY2018/19

FY2019/20

FY2020/21

FY2021/22

FY2022/23

FY2023/24

FY2024/25

Actual Direct Use Actual Recharge Use Projected Direct Use

Projected Recharge Use 2015 Forecast



2.1.1 Recycled Water Direct Use Costs

The Recycled Water fund records the revenues and expenses associated with the operations and

maintenance of the facilities used to distribute recycled water supplied from Agency’s four

Agency water recycling plants to direct users and recharge basins, including a portion of

groundwater recharge O&M expenses not funded by Watermaster. Additionally, the Recycled

Water fund records all revenues and costs related to capital projects and financing of the

regional recycled water distribution system (RRWDS).

In FY 2020/21 the projected costs for the Recycled Water fund total $26.14 million and include:

$10.47 million O&M expenses, non-operating expenses of $12.12 million debt service costs and

$2.30 million capital project costs, and $1.25 million non-reimbursable recharge O&M expenses

as summarized in Table 2. Appendix B provides details for O&M budget line-items.

Table 2 Recycled Water Expenses Summary

Recycled Water Expenses FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Direct Use Activity

Operating Expenses $10.47 $10.54 $10.80 $11.16 $12.24

Non-operating Expenses

Debt Service 12.12 12.47 14.42 15.41 14.68

Capital 2.30 1.50 5.31 4.00 3.96

Subtotal - Recycled Water Direct Use Activity

$24.89 $24.51 $30.52 $30.57 $30.88

Recharge Activity - Non-Reimbursable


Non-operating Expenses - - - - -

Subtotal - Recharge Water Activity

$1.25 $1.31 $1.37 $1.34 $1.30

Total Recycled Water $26.14 $25.82 $31.89 $31.91 $32.18

Notes: (1) Presented totals may not tie due to rounding for presentation purposes. All values in millions of dollars.

As legally required, the recharge operating expenses currently recorded in the Recycled Water

fund not reimbursable from Watermaster will be consolidated into the Recharge Water fund to

appropriately calculate the recharge rate needed to recover related program costs. In FY 2020/21

non-reimbursable recharge activity costs are projected to be $1.25 million as reported in Table 2.

2.1.2 Recharge Water Costs

The Recharge Water fund accounts for the revenues and expenses associated with the

operations and maintenance of groundwater recharge facilities. Through the joint effort of the

Watermaster, the CBWCB, the SBCFCD, the Agency operates and maintains 19 groundwater

recharge basins. Costs recorded in the Recharge Water fund are partially reimbursable by

Watermaster and include general basin maintenance or restoration costs, groundwater

administration (e.g. labor, utilities, equipment, and tools), contracted services (e.g. weeding and

vector control), and compliance reporting and environmental documentation fees for the



program’s Fish & Game Permit. As shown in Table 3, recharge O&M costs for FY 2020/21 are

projected to be $1.79 million. Also included are non-reimbursable recharge activity costs

currently recorded in the Recycled Water fund (see Table 2). As legally required, these non-

reimbursable recharge operating expenses will be consolidated into the Recharge Water fund to

appropriately calculate the recharge rate needed to recover related program costs. In FY 2020/21

non-reimbursable recharge activity costs are projected to be $1.25 million as reported in Table 3.

Non-operating expenses for the Recharge Water fund include debt service and capital project

costs as presented in Table 3. In FY 2020/21 debt service costs are projected to be $1.32 million

and capital project costs are $13.18 million. Debt service costs are for the 2008B Variable Rate

Bonds (refinancing the 2002A Bonds in May 2008) issued to finance the Chino Basin Facilities

Improvement Project (CBFIP). Debt principal and interest costs are equally shared by

Watermaster and the Agency. The Agency’s portion of debt service cost is supported by an inter-

fund transfer from the Regional Wastewater Capital Improvement fund and the Recycled Water

fund supports capital.

In FY 2020/21 total costs for the Recharge Water fund are projected to be $17.54 million,

including $3.04 million O&M (inclusive of recharge costs from the Recycled Water fund),

$1.32 million debt service costs, and $13.18 million capital project costs. Appendix B provides

details for O&M budget line-items.

Table 3 Recharge Water Operating Expenses

Recharge Water FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25


Recharge Expenses from Recycled Water fund (Table 2)

$1.25 $1.31 $1.37 $1.34 $1.30

Total Recharge Operating Expenses

$3.04 $3.17 $3.29 $3.33 $3.38

Non-operating Expenses

Debt Service $1.32 $1.51 $1.50 $1.50 $1.50

Capital 13.18 0.29 0.50 0.75 1.00

Total Recharge Water Non-Operating Expenses

$14.51 $1.80 $2.00 $2.25 $2.50

Total Recharge Water $17.54 $4.96 $5.29 $5.58 $5.87

Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes.

2.2 Transfers

IEUA utilizes inter-fund transfers to support related costs in other programs. One example is the

transfer of water connection fees from the Recycled Water fund to the Water Resources,

Recharge Water and Administrative funds. Water connection fees are initially recorded in the

Recycled Water fund and transferred to other funds to support capital project costs related to

growth in the service area. Table 4 and Table 5 summarize the forecasted transfers IN and OUT

of the Recycled Water and Recharge Water funds over the next five fiscal years. These transfers

are accounted for in both the recycled and recharge water revenue requirement calculations.



Table 4 Recycled Water Fund Transfers ($ millions)

Transfers FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Transfer In/(Out) - Recycled Water - Direct Usage Activity

Capital Contribution (to Administrative fund)

$(0.02) $(0.01) $(0.01) $(0.02) $(0.03)

Connection Fee Allocation (to Water Resources, Recharge Water, Administrative funds)

(4.53) (1.39) (1.25) (2.45) (0.72)

Debt Service (from Regional Wastewater funds)

2.54 2.54 2.54 2.67 2.67

Operating Support (to Administrative fund)

(0.05) (0.01) (0.04) (0.03) -

Subtotal - Recycled Water Direct Usage

$(2.05) $1.13 $1.24 $0.17 $1.91

Transfer In/(Out) - Recycled Water - Recharge Activity

Capital Contribution (to Recharge Water fund)

$- $- $(0.01) $(0.11) $(0.22)

Operating Support (to Recharge Water fund)

(0.71) (0.75) (0.78) (0.81) (0.87)

Subtotal - Recycled Water Recharge

$(0.71) $(0.75) $(0.79) $(0.92) $(1.08)

Total Net Recycled Water Fund Transfers

$(2.76) $0.38 $0.45 $(0.75) $0.83


Table 5 Recharge Water Fund Transfers ($ millions)

Transfer In/(Out) - Recharge Water

FY 2020/21

FY 2021/22

FY 2022/23

FY 2023/24

FY 2024/25

Capital Contribution (from Recycled Water)

$- $- $0.01 $0.11 $0.22

Connection Fee Allocation (from Recycled Water)

3.03 0.07 0.12 0.17 0.23

Debt Service (from Regional Wastewater Capital)

0.66 0.69 0.69 0.69 0.69

Operating Support (from Recycled Water)

0.71 0.75 0.78 0.81 0.87

Total Recharge Water Transfers $4.40 $1.51 $1.59 $1.78 $2.00




2.3 Offsetting Revenues

In addition to revenues generated from the Recycled and Recharge Water rates, there are other

offsetting revenue sources that decrease the amount of funds required to be collected through

the Recycled and Recharge Water rates. The following revenues are used to offset the Recycled

and Recharge Water Rate revenue requirements;

Operating Offsetting Revenues:

Cost reimbursement from Watermaster

Interest revenue

Non-Operating Offsetting Revenues:

Connection fees

Property tax – debt & capital

Loans

Grants

Capital Cost Reimbursement

Table 6 summarizes the total amounts of each offsetting operating revenue applied to the total

Recycled and Recharge Water Rate revenue requirement.

Table 6 Offsetting Operating Revenues ($ millions)

Offsetting Operating Revenues FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Offsetting Operating Revenues - Recycled Water Direct Use

Interest Revenue $0.95 $0.94 $1.23 $1.36 $1.44

Subtotal Recycled Water $0.95 $0.94 $1.23 $1.36 $1.44

Offsetting Operating Revenues - Recharge Water

Cost Reimbursement from Watermaster $1.08 $1.11 $1.14 $1.18 $1.21

Interest Revenue 0.16 0.19 0.20 0.20 0.20

Subtotal Recharge Water $1.24 $1.30 $1.34 $1.37 $1.41

Total Offsetting Operating Revenues $2.19 $2.24 $2.57 $2.75 $2.85


Table 7 summarizes the total amounts of each offsetting non-operating revenue, including the

use of connection fees, applied to the total Recycled and Recharge Water Rate revenue

requirement.



Table 7 Offsetting Non-Operating Revenues

Non-Operating Revenues FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Non-Operating Revenues - Recycled Water Direct Use

Property Tax $2.17 $2.17 $2.17 $2.17 $2.17

Projected Connection Fees Revenue 6.42 6.67 6.93 7.20 7.48

Loans 3.48 - - - -

Grants 1.35 - - - -

Capital Cost Reimbursement 0.09 0.09 0.09 0.09 0.10

Subtotal Recycled Water $13.51 $8.93 $9.19 $9.46 $9.75

Non-Operating Revenues - Recharge Water

Loans 3.76 0.14 - - -

Grants 11.52 - - - -

Capital Cost Reimbursement 0.66 0.94 1.06 1.19 1.31

Subtotal Recharge Water $15.95 $1.08 $1.06 $1.19 $1.31

Total Non-Operating Offsetting Revenues

$29.45 $10.01 $10.25 $10.65 $11.06

Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in millions of dollars.

Revenues from IEUA’s one water connection fee are collected in the WC and used for eligible

expenditures which include capital projects as well as a share of debt service. Additionally,

connection fees are transferred to the Recharge Water (RW), Water Resources (WW), or General

Administrative (GG) funds to pay for eligible projects. Table 8 shows the expected connection

fee revenues for each fiscal year as well as the projected use of connection fees.

Table 8 Use of Connection Fees

Use of Connection Fees FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Projected Connection Fee Revenue $6.42 $6.67 $6.93 $7.20 $7.48

Eligible Recycled Water Projects $0.38 $0.44 $1.28 $0.98 $1.10

Transfer to Recharge Water Fund for Eligible Projects

3.03 0.07 0.12 0.17 0.23

Transfer to Water Resources Fund for Eligible Projects

1.45 1.31 1.11 2.26 0.47

Transfer to General Administrative Fund for Eligible Projects

0.04 0.01 0.03 0.02 0.02

Use for Debt Service - 0.10 1.63 2.25 1.15

Total Connection Fees to be Used $4.91 $1.93 $4.16 $5.68 $2.97




2.4 Projected Revenue Requirements

The amount of revenue to be collected from user rates is defined by the total revenue

requirements less any offsetting revenues. The sections below present the revenue required

from both the Recycled Water Rate and Recharge Water Rate. Additional detailed financial

projection tables are included for reference in Appendix B.

Actual recycled water demands since the 2015 Rate Study were significantly below the expected

demands that served as the basis for that study, resulting in lower revenues for the Recycled

Water and Recharge Water funds. The revenue shortfall between FYs 2015/16 – 2018/19 due to

lower than projected recycled water deliveries is estimated at $11 million. In order to recover

from these revenue losses and to keep up with inflationary increases in costs, annual increases of

3 percent are recommended for the direct recycled water use rate.

In order to appropriately recover recharge program costs (including non-reimbursable recharge

costs recorded in the WC) and keep up with inflationary cost increases, the recharge surcharge

will need to be adjusted by 20.2 percent for FY 2020/21 through FY 2022/23, and 19.5 percent for

FY 2023/24 and FY 2024/25.

2.4.1 Recycled Water Revenue Requirement

Based on preliminary budget projections, IEUA’s recycled water total revenue requirement for

FY 2020/21 is $18.42 million. As illustrated in Table 9, the total recycled water revenue

requirement is projected to grow to $21.61 million by FY 2024/25, driven by forecasted increases

in recycled water demand and inflationary increases in costs.



Table 9 Required Recycled Water Direct Use Rate Revenues

Recycled Water Fund Required Rate Revenues

FY 2020/21

FY 2021/22

FY 2022/23

FY 2023/24

FY 2024/25


Debt Service 12.12 12.47 14.42 15.41 14.68

Capital 2.30 1.50 5.31 4.00 3.96

Transfers 2.76 (0.38) (0.45) 0.75 (0.83)

Total Expenses $27.65 $24.13 $30.08 $31.32 $30.05

Remove Operation Support to Recharge Water Fund

(0.71) (0.75) (0.78) (0.81) (0.87)

Remove Capital Support to Recharge Water Fund

0.00 0.00 (0.01) (0.11) (0.22)

Less: Offsetting Revenues

Operating Revenues $(0.95) $(0.94) $(1.23) $(1.36) $(1.44)

Non-Operating Revenues, net of connection fees (Table 7)

(7.09) (2.26) (2.26) (2.26) (2.27)

Use of Connection Fees for Transfers, Projects, and Debt Service (Table 8)

(4.91) (1.93) (4.16) (5.68) (2.97)

Subtotal: Offsetting Revenues $(12.95) $(5.13) $(7.65) $(9.30) $(6.68)

Contribution to (Use of) Reserves $4.44 $0.84 $(1.54) $(0.40) $(0.67)

Required Revenues from Direct Usage Rates

$18.42 $19.09 $20.09 $20.70 $21.61


The offsetting revenues include One Water connection fees to help lower the rate revenue

requirements by using connection fees to pay a portion of debt service. The calculation of the

water connection fee includes an allocation of the existing assets based on excess capacity and

CIP projects that will benefit future users. Therefore, annual revenues from connection fees can

be used to offset direct capital costs and/or debt service payment that would otherwise be borne

by user rates. The use of connection fees in this manner allows the Agency to account for

fluctuations driven by the development cycle.

2.4.2 Recharge Water Revenue Requirement

Based on preliminary budget projections, IEUA’s recharge water total revenue requirement for

FY 2020/21 is $1.01 million. Table 10 presents the required rate revenues for recharge water

usage. As shown, the total recharge water revenue requirement is projected to grow to

$2.24 million by FY 2024/25, driven primarily by the rate revenue increases needed to reach full

cost recovery and to a lesser extent increases in demands.



Table 10 Required Recharge Water Rate Revenues ($ millions)

Recharge Water Required Rate Revenues FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25


Debt Service 1.32 1.51 1.50 1.50 1.50

Capital 13.18 0.29 0.50 0.75 1.00

Transfers (Includes Connection Fees) (4.40) (1.51) (1.59) (1.78) (2.00)

Total Expenses $13.14 $3.46 $3.70 $3.79 $3.88

Plus: Operations Previously Supported by Recycled Water Fund

0.71 0.75 0.78 0.81 0.87

Plus: Capital Previously Supported by Recycled Water Fund

- - 0.01 0.11 0.22

Less: Offsetting Revenues

Operating Revenues $(1.24) $(1.30) $(1.34) $(1.37) $(1.41)

Non-Operating Revenues (15.95) (1.08) (1.06) (1.19) (1.31)

Subtotal: Offsetting Revenues $(17.19) $(2.38) $(2.40) $(2.56) $(2.72)

Contribution to (Use of) Reserves $4.35 $(0.60) $(0.52) $(0.27) $0.00

Required Revenues from Recharge Surcharge Rates

$1.01 $1.23 $1.57 $1.88 $2.24


– Rate Design The rate design analysis uses the results of the revenue requirement analysis along with recycled

water demands (direct usage and recharge) to calculate rates. The study has reviewed several

rate structure options including retaining the existing variable rate structure or the

implementation of a fixed charge to recover a portion of revenue requirements.

3.1 Current Structure Rates

The current rate design consists of a variable recycled water rate per AF, and a recharge water

surcharge rate per AF. The forecasted recycled water demand and projected revenue

requirements are used to determine the $/AF recycled water rate over the FY 2020/21 through

FY 2024/25 rate study period using the following calculation.

𝑅𝑒𝑐𝑦𝑐𝑙𝑒𝑑 𝑊𝑎𝑡𝑒𝑟 𝐷𝑖𝑟𝑒𝑐𝑡 𝑈𝑠𝑒 𝑅𝑎𝑡𝑒 ($𝐴𝐹⁄ )

=𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑅𝑒𝑐𝑦𝑐𝑙𝑒𝑑 𝑊𝑎𝑡𝑒𝑟 𝐷𝑖𝑒𝑐𝑡 𝑈𝑠𝑒 𝑅𝑎𝑡𝑒 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝐹𝑜𝑟𝑒𝑐𝑎𝑠𝑡𝑒𝑑 𝑅𝑒𝑐𝑦𝑐𝑙𝑒𝑑 𝑊𝑎𝑡𝑒𝑟 𝐷𝑒𝑚𝑎𝑛𝑑



The forecasted recharge water demand and projected revenue requirements are used to

determine the $/AF recharge water surcharge over the FY 2020/21 through FY 2024/25 rate

study period using the following calculation.

𝑅𝑒𝑐ℎ𝑎𝑟𝑔𝑒 𝑊𝑎𝑡𝑒𝑟 𝑅𝑎𝑡𝑒 ($𝐴𝐹⁄ )

= (𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑 𝑅𝑒𝑐ℎ𝑎𝑟𝑔𝑒 𝑊𝑎𝑡𝑒𝑟 𝑅𝑎𝑡𝑒 𝑅𝑒𝑣𝑒𝑛𝑢𝑒

𝐹𝑜𝑟𝑒𝑐𝑎𝑠𝑡𝑒𝑑 𝑅𝑒𝑐ℎ𝑎𝑟𝑔𝑒 𝑊𝑎𝑡𝑒𝑟 𝐷𝑒𝑚𝑎𝑛𝑑) + 𝑅𝑒𝑐𝑦𝑐𝑙𝑒𝑑 𝑊𝑎𝑡𝑒𝑟 𝑅𝑎𝑡𝑒

3.1.1 Proposed Recycled Water Direct Use Rate: Alternative 1

Table 11 presents the calculation of the proposed recycled water direct use rates for each year of

the study period under the current rate structure. The rates presented would be charged to all

users of recycled water whether for direct use or recharge.

Table 11 Proposed Recycled Water Direct Use Rate ($/AF)

FY 2020/21

FY 2021/22

FY 2022/23

FY 2023/24

FY 2024/25

Required Revenues from Rates (millions)

$18.42 $19.09 $20.09 $20.70 $21.61

Projected Demands (AF) 36,500 36,700 37,500 37,500 38,000

Recycled Water Direct Use Rate per AF

$505 $520 $536 $552 $569


3.1.2 Proposed Recharge Water Rate: Alternative 1

The Agency’s recharge water customers are charged a per AF surcharge in addition to the

recycled water rate. Table 12 presents the calculation of the proposed recharge surcharge rates

as well as the total rate for recharge water for each year of the study period under the current

rate structure.

Table 12 Proposed Recharge Water Surcharge Rate ($/AF)

FY 2020/21

FY 2021/22

FY 2022/23

FY 2023/24

FY 2024/25

Required Revenues from Rates (millions)

$1.01 $1.23 $1.57 $1.88 $2.24

Projected Demands (AF) 14,000 14,200 15,000 15,000 15,000

Recharge Surcharge Rate per AF $72 $87 $105 $125 $149

Direct Usage Rate per AF $505 $520 $536 $552 $569

Total Recharge Rate per AF $577 $607 $641 $677 $718




3.2 Potential Fixed Charges

As an alternative to the current variable-only rate structure, IEUA is recommending developing a

fixed charge component to the recycled and recharge water funds. The implementation of a

fixed charge, combined with a commodity charge, would provide revenue stability for both the

Recycled Water and Recharge Water programs. Given that cash flow and revenue requirements

for each fund vary from year to year as seen in Table 9 and Table 10, the addition of a fixed

charge would provide a more consistent revenue source to support a portion of the fixed costs

and insulate the funds from years of low demand or large capital expenditures.

In addition to the Alternative 1 (current rate structure), IEUA is considering the following rate

alternatives as a basis for implementing a fixed charge.

Alternative 2 - Member agency three-year rolling average direct use and recharge water

demands.

Alternative 3 - Member agency number of EDUs.

Alternative 4 - Member agency three-year rolling average for fixed revenue requirements

related to all recycled water direct use and number of EDUs for recharge water related fixed

revenue requirements.

Alternative 5 - Member agency number of MEUs for fixed revenue requirements related to

all recycled water direct use and number of EDUs for recharge water related fixed revenue

requirements.

3.2.1 Fixed Charge Expenses

There are various cost components within the groundwater recharge and direct use activities

that are consistent year over year in order to maintain the delivery of recycled and recharge

water to the Agency’s users. This analysis focused on developing fixed charges to sufficiently

cover the Agency’s annual debt service costs, less any other contributions toward debt service.

Under the fixed charge rate alternatives, the Watermaster and the Regional Wastewater Capital

Improvement fund transfers are projected to continue to cover all of debt service costs for the

Recharge Water fund; therefore, no fixed charge component is necessary for the recharge rate.

Under the options presented below, the proposed recharge surcharge would be equal to the

surcharge presented previously in Table 12 (i.e. $72 per AF in FY 2020/21 increasing to $149 per

AF by FY 2024/25).

As shown in Table 13, the Agency applies property tax revenues and a transfer from the Regional

Wastewater Capital Improvement fund to cover a portion of the Recycled Water fund debt

service costs. As discussed previously, the Agency can also use a portion of One Water

connection fee revenues to cover a share of debt service on the excess capacity of existing

system assets, as well as future debt service for growth related projects. Moving forward, the

Agency intends to take advantage of this ability and allocate a portion of connection fee

revenues to cover eligible Recycled Water debt service costs. The use of connection fee revenues

in this manner will help to smooth the year-over-year changes in fixed revenue collection and

help the Agency account for fluctuations in the annual connection fee revenues cause by varying

development.



Table 13 Direct Use Fixed Charge Revenue Requirement

Budget Item FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Debt Service $9.12 $9.47 $9.42 $9.41 $9.18

Short Term Inter-Fund Loan 3.00 3.00 5.00 6.00 5.50

Fixed Offsetting Revenues & Transfers

Property Tax - Debt and Capital $(2.17) $(2.17) $(2.17) $(2.17) $(2.17)

Debt Service Transfer from

Regional Wastewater Capital Fund (2.54) (2.54) (2.54) (2.67) (2.67)

Connection Fee Contribution for Debt Service

- (0.10) (1.63) (2.25) (1.15)

Direct Use Fixed Rate Revenue Requirement

$7.41 $7.66 $8.08 $8.32 $8.69


The revenue requirements previously presented in Table 9 represent the total amount of

revenue that must be recovered through rates for the Recycled Water fund. If a fixed charge

component is implemented, the total revenue requirement would be split between the fixed and

variable charges.

Fixed charges would be set to recover the fixed rate revenue requirements shown in Table 13,

the remaining rate revenue requirement, after subtracting the fixed rate component from the

total, is the variable component that is used to develop a reduced variable rate per AF for direct

recycled water use as shown in Table 14. Like the current rate structure, the presented direct

usage rates would be assessed to all recycled water demands (direct and recharge).

Table 14 shows the calculation of the variable revenue requirement and the resulting direct use

and total recharge rates. By implementing a fixed charge, the variable rate component for the

direct use and recharge water funds will decrease. Because the fixed and variable revenue

requirements are consistent in the fixed charge options analyzed, the direct use rate is the same

for all fixed charge options. If a fixed charge is included, the proposed direct recycled water

variable rate for FY 2020/21 would decrease from $505/AF to $302/AF, and the recharge water

variable rate (a combination of the direct recycled rate and the recharge surcharge) would

decrease from $577/AF to $374/AF.



Table 14 Direct Use Variable Revenue Requirement

Budget Item FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Total Revenue Requirement $18.42 $19.09 $20.09 $20.70 $21.61

Less: Fixed Rate Revenue Requirement $(7.41) $(7.66) $(8.08) $(8.32) $(8.69)

Variable Rate Revenue Requirement $11.01 $11.43 $12.01 $12.38 $12.92

Recycled & Recharge Water Demands (AF)

36,500 36,700 37,500 37,500 38,000

Direct Recycled Water Rate ($/AF) $302 $311 $320 $330 $340

Recharge Surcharge ($/AF) $72 $87 $105 $125 $149

Total Recharge Rate ($/AF) $374 $398 $425 $455 $489


3.2.2 Alternative 2: Three-year Rolling Average Demands

The Agency is considering rate alternatives to allocate fixed charge costs. The second option is

based on the three-year rolling average of recycled and recharge water demands. The allocated

fixed revenue collection for each year would be apportioned to each recycled water user based

on their proportionate share of three year rolling average demands. This methodology

recognizes that the Agency constructed and operates the system, and plans for future

improvements, to provide capacity to serve expected member agency demands. Thus, the

historic member agency demands are used as a measure of the system capacity, and fixed costs,

required to serve each user’s demands.

The calculation relies on total recycled water usage from each agency (recycled and recharge)

since the greater recycled water system (transmission, distribution, etc.) is necessary to provide

water for direct use as well as recharge. Table 15 shows the projected three- year rolling average

consumption for each recycled water user. The overall fixed revenue collected each year would

remain consistent with projections because the Agency would adopt the total fixed revenues to

be collected, rather than a unit rate.

Table 15 Total Recycled and Recharge Water Three-Year Rolling Average Demands

User FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

City of Ontario 11,962 12,225 13,326 13,491 13,564

City of Chino – Includes SB County 7,699 7,946 8,873 8,971 9,007

City of Chino Hills 2,982 3,083 3,358 3,409 3,439

City of Upland 1,966 2,030 2,161 2,206 2,237

City of Fontana 2,653 2,671 2,838 2,917 2,981

CVWD 4,408 4,460 4,803 4,913 4,997

City of Montclair 882 906 973 993 1,008

Total Recycled & Recharge Three Year Rolling Average Demand

32,552 33,320 36,333 36,900 37,233

Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in acre-feet (AF).



The overall fixed revenue requirements to be allocated among the other users is the fixed rate

revenue requirement shown in Table 13. Each user’s share is set by multiplying the fixed revenue

requirement by their share of three-year rolling average consumption.

The values shown in Table 16 are based on projected demands for each user and are for

illustrative purposes. If this rate structure is adopted, the three-year rolling average that is used

to allocate the fixed revenues to each user would be updated each year based on the three

previous years of deliveries.

Table 16 Alternative 2 FY 2020/21 Fixed Revenue Allocation Example

User Three-Year Rolling Average Demand Allocated Fixed

Revenues

AF % $ millions

City of Ontario 11,962 36.7% $2.72

City of Chino 7,699 23.7% 1.75

City of Chino Hills 2,982 9.2% 0.68

City of Upland 1,966 6.0% 0.45

City of Fontana 2,653 8.2% 0.60

CVWD 4,408 13.5% 1.00

City of Montclair 882 2.7% 0.20

Total 32,552 100% $7.41 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes.

Table 17 shows the estimated fixed revenues from each user under three-year rolling average for

each year of the analysis.

Table 17 Alternative 2 Fixed Revenues by User

User FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

City of Ontario $2.72 $2.81 $2.96 $3.04 $3.17

City of Chino 1.75 1.83 1.97 2.02 2.10

City of Chino Hills 0.68 0.71 0.75 0.77 0.80

City of Upland 0.45 0.47 0.48 0.50 0.52

City of Fontana 0.60 0.61 0.63 0.66 0.70

CVWD 1.00 1.03 1.07 1.11 1.17

City of Montclair 0.20 0.21 0.22 0.22 0.24

Total Fixed Revenues $7.41 $7.66 $8.08 $8.32 $8.69 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in millions of dollars.

3.2.3 Alternative 3: Number of EDUs

The third option that IEUA is considering for allocation of fixed charges is a rate based on the

number of EDUs that each user of recycled and/or recharge has. This is in line with the amount of

recycled water entitlements assigned to each user based on the Regional Sewage Service

Contract. Table 18 summarizes actual EDUs for each IEUA member agency as of FY2018/19.



Based on the number of EDUs of each user, their share of each fixed revenue requirement would

be collected annually.

Table 18 Alternative 3 EDUs by User and Projected Share of Fixed Charge Revenue Requirement

User

# EDUs

(FY 2018/19)

% EDUs

(FY 2018/19)

Projected Share of Direct Recycled Fixed Revenues

City of Ontario 772,176 22.5% 22.5%

City of Chino 370,820 10.8% 10.8%

City of Chino Hills 305,993 8.9% 8.9%

City of Upland 318,093 9.3% 9.3%

City of Fontana 689,243 20.1% 20.1%

CVWD 825,343 24.1% 24.1%

City of Montclair 144,563 4.2% 4.2%

Total EDUs 3,426,229 100.0% 100.0%


Table 19 shows an example of the fixed revenues that would be collected from each user based

on EDUs under Alternative 3. Fixed revenues are apportioned to each user by multiplying each

user’s share of fixed revenues (Table 18) by the overall fixed revenue requirement. If this rate

structure is adopted, the EDUs that are used to allocate the fixed revenues to each user would be

updated each year.


User FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

City of Ontario $1.67 $1.73 $1.82 $1.88 $1.96

City of Chino 0.80 0.83 0.87 0.90 0.94


City of Upland 0.69 0.71 0.75 0.77 0.81

City of Fontana 1.49 1.54 1.63 1.67 1.75

CVWD 1.79 1.85 1.95 2.00 2.09



3.2.4 Alternative 4: Three-year Rolling Average Demands and Number of EDUs

The fourth option that IEUA is considering is a combination of Alternatives 2 and 3. In this option,

the allocated fixed revenue collection is further allocated based on the types of projects that past

debt proceeds were used to fund. An analysis of the outstanding debt in the Recycled Water

fund showed that 28.75 percent of debt proceeds were used to fund infrastructure related to

serving recharge facilities, the remaining 71.25 percent of proceeds were used to construct

facilities benefitting all types of usage. Since the fixed charges are set to recover debt service



costs less offsetting revenues, the amount of fixed revenue to be collected can be allocated as

related to recharge usage or related to all usage based on the use of debt proceeds. Table 20

shows the allocated fixed revenue requirements.

Table 20 Fixed Revenue Requirements Allocated Based on Debt

RW Fixed Charge Revenues FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

Fixed Rate Revenue Requirement $7.41 $7.66 $8.08 $8.32 $8.69

Related to Recharge Use – 28.75% $2.13 $2.20 $2.32 $2.39 $2.50

Related to All Recycled Water Use – 71.25% $5.28 $5.46 $5.75 $5.93 $6.19 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in millions of dollars.

Under this option, fixed revenue requirements related to all recycled water use for each year

would be apportioned to each recycled water user based on their proportionate share of total

three year rolling average demands, as shown in Table 15. Because each agency’s recharge

entitlements are based on their share of EDUs, the fixed revenue requirements related to

recharge water for each year would be apportioned to each recharge water user based on the

number of EDUs that each user of recharge water has, as outlined in Table 18.

Table 21 shows the allocation of the share of fixed revenue requirements related to all recycled

water usage to each user based on three year rolling average.

Table 21 Alternative 4 FY 2020/21 All Recycled Water Use Fixed Revenue Allocation Example

User Three-Year Rolling Average Demand Allocated Fixed

Revenues

AF % $ millions

City of Ontario 11,962 36.7% $1.94

City of Chino 7,699 23.7% 1.25


City of Upland 1,966 6.0% 0.32

City of Fontana 2,653 8.2% 0.43

CVWD 4,408 13.5% 0.71

City of Montclair 882 2.7% 0.14

Total 32,552 100% $5.28 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes.



Table 22 shows the allocation of the share of fixed revenue requirements related to recharge

allocated to each user based on EDUs.

Table 22 Alternative 4 FY 2020/21 Recharge Water Fixed Revenue Allocation Example

User

# EDUs

(FY 2018/19)

% EDUs

(FY 2018/19)

Allocated Recharge Water Fixed

Revenues

# % $ millions

City of Ontario 772,176 22.5% 0.48

City of Chino 370,820 10.8% 0.23


City of Upland 318,093 9.3% 0.20

City of Fontana 689,243 20.1% 0.43

CVWD 825,343 24.1% 0.51

City of Montclair 144,563 4.2% 0.09

Total 3,426,229 100.0% $2.13



on the three-year rolling average and EDUs under Alternative 4.


User FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

City of Ontario $2.42 $2.50 $2.63 $2.71 $2.82

City of Chino 1.48 1.54 1.66 1.70 1.77


City of Upland 0.52 0.54 0.56 0.58 0.60

City of Fontana 0.86 0.88 0.92 0.95 1.00

CVWD 1.23 1.26 1.32 1.37 1.43



3.2.5 Alternative 5: MEUs and EDUs

The last alternative that IEUA is considering for the allocation of fixed revenue collection is

similar to Alternative 4; however it apportions fixed revenue requirements related to all usage

based on each member agency’s proportionate share of recycled water MEUs. Like Alternative 4

fixed revenue requirements related to recharge water are allocated based on each user’s share of

EDUs.

Table 24 summarizes the amount of recycled water MEUs for each IEUA member agency as of

FY 2018/19 and their proportionally allocated fixed revenue requirements related to all recycled

water usage.



Table 24 Alternative 5 Recycled Water MEUs by User and Projected Share of Fixed Charge

Revenue Requirement

User

# MEUs

(FY 2018/19)

% MEUs

(FY 2018/19)

Allocated Fixed Revenues

# % $ millions

City of Ontario 4,471 35% 1.82

City of Chino(2) 4,545 35% 1.85

City of Chino Hills 1,708 13% 0.70

City of Upland 613 5% 0.25

City of Fontana 131 1% 0.05

CVWD 1,282 10% 0.52

City of Montclair(3) 193 1% 0.08

Total 12,942 100% $5.28

Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. (2) City of Chino MEUs estimated based on recycled water usage. (3) City of Montclair MEUs based on reported MEUs from Monte Vista Water District.

The allocated recharge water fixed revenue collection for each year would be apportioned to

each recycled water user based on their proportionate share of EDUs, as previously outlined in

Alternative 4 and shown in Table 22.


on MEUs and EDUs under Alternative 5. Total fixed revenues are apportioned to each user by

multiplying each user’s share of MEUs by the total direct use fixed revenues (Table 24) and

multiplying each user’s share of EDUs by the total recharge water fixed revenues (as shown in

Table 22).


User FY

2020/21 FY

2021/22 FY

2022/23 FY

2023/24 FY

2024/25

City of Ontario $2.30 $2.38 $2.51 $2.59 $2.70

City of Chino 2.08 2.16 2.27 2.34 2.45


City of Upland 0.45 0.46 0.49 0.50 0.53

City of Fontana 0.48 0.50 0.53 0.54 0.57

CVWD 1.04 1.07 1.13 1.16 1.22



3.2.6 Fixed Charge Revenue Comparison

The above fixed charge alternatives provide the Agency with different ways to recover fixed

revenues for the recycled and recharge water funds. Under each scenario, the total revenues

from each user would be equal to their allocated share of fixed costs plus their variable charges



based on their usage in each year and the rates shown in Table 11 and Table 12 for the current

rate structure or Table 14 for the fixed structure alternatives. Table 26 shows an example of the

total revenue calculation under Alternative 2 for FY 2020/21.

Table 26 FY 2020/21 Total Revenue Calculation Example

User Direct Use Recharge Variable

Revenues

Fixed Revenues

(Alt 2)

Total Revenues

Rate $302.00 $374.00 $ millions $ millions $ millions AF AF

City of Ontario 10,309 3,093 $4.27 $2.72 $6.99

City of Chino 7,424 1,504 2.80 1.75 4.56

City of Chino Hills 2,118 1,256 1.11 0.68 1.79

City of Upland 831 1,336 0.75 0.45 1.20

City of Fontana 143 2,697 1.05 0.60 1.66

CVWD 1,307 3,507 1.71 1.00 2.71

City of Montclair 369 607 0.34 0.20 0.54

Total 22,500 14,000 $12.03 $7.41 $19.43 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in millions of dollars.

Table 27 illustrates the projected total revenue to be recovered for both the direct use and

groundwater recharge rates by each user under the current structure, a three-year rolling

average demands structure, an EDU-based structure, a three-year rolling average and EDU-

based structure, and an MEU- and EDU-based structure. Table 28 presents the percent of total

revenue to be collected for each alternative, by each user for FY 2020/21 through FY 2024/25.

There are more modest changes among users when comparing the current structure to the

proposed three-year rolling average (Alternative 2) and three-year rolling average and number of

EDUs (Alternative 4) fixed charges. There are larger differences between the current structure

and the number of EDUs (Alternative 3), and MEUs and EDUs (Alternative 5) methods for

recovering the fixed rate revenue requirement. This is also illustrated in Figure 2.

Table 27 FY 2020/21 Total Recycled Water Revenue by User, Direct and Recharge

User

Alt 1:

Current Structure

Alt 2:

Three-Year Rolling

Average

Alt 3:

Number of EDUs

Alt 4:

Three-Year Rolling Avg.

& EDUs

Alt 5:

MEUs & EDUs

City of Ontario $6.99 $6.99 $5.94 $6.69 $6.57

City of Chino 4.62 4.56 3.61 4.28 4.89


City of Upland 1.19 1.20 1.44 1.27 1.20

City of Fontana 1.63 1.66 2.54 1.91 1.53

CVWD 2.68 2.71 3.49 2.93 2.74


Total Revenue $19.43 $19.43 $19.43 $19.43 $19.43 Notes: (1) Presented totals may vary from values above due to rounding for presentation purposes. All values in millions of dollars.



Table 28 Five Year Average Revenue Comparison, User Percent Share of Total Revenues

User

Alt 1:

Current Structure

Alt 2:

Three-Year Rolling

Average

Alt 3:

Number of EDUs

Alt 4:

Three-Year Rolling Avg.

& EDUs

Alt 5:

MEUs & EDUs

City of Ontario 35.4% 35.5% 30.2% 34.0% 33.4%

City of Chino 23.3% 23.2% 18.3% 21.8% 24.7%

City of Chino Hills 9.2% 9.2% 9.1% 9.2% 10.2%

City of Upland 6.3% 6.3% 7.5% 6.6% 6.3%

City of Fontana 8.8% 8.8% 13.3% 10.1% 8.2%

CVWD 14.2% 14.2% 18.2% 15.4% 14.5%

City of Montclair 2.8% 2.8% 3.4% 3.0% 2.7%

Total Revenue 100% 100% 100% 100% 100%


Figure 2 Percent of Total Recycled and Recharge Fixed Charge Revenues, by User

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

City ofOntario

City ofChino

City ofChino Hills

City ofUpland

City ofFontana

CVWD MVWD andCity of

Montclair

Current StructureAlternative 2 - 3-Year Rolling AverageAlternative 3 - EDUsAlternative 4 - EDUs and 3-Year Rolling AverageAlternative 5 - EDUs and MEUs

FIXED

VARIABLE


DRAFT| DECEMBER 2019

Appendix A

HISTORIC AND PROJECTED DEMANDS

Direct Recycled Water and Recharge Water demands for each member agency are shown in the

figures below. Given total direct and recharge water demands projected by IEUA, demands by

user were projected based on their 3-year average share of direct or recharge demands during

FY 2016/17 through FY 2018/19. Additional detail is provided in the tables on the following

pages.

-

5,000

10,000

15,000

20,000

25,000

30,000

FYE2010

FYE2011

FYE2012

FYE2013

FYE2014

FYE2015

FYE2016

FYE2017

FYE2018

FYE2019

FYE2020

FYE2021

FYE2022

FYE2023

FYE2024

FYE2025

Acr

e-Fe

et p

er Y

ear

Direct Recycled Demands

City of Ontario City of Chino - Inc. SB County City of Chino HillsCity of Upland City of Fontana CVWDMVWD City of Montclair

ProjectedActual

-

5,000

10,000

15,000

20,000

FYE2010

FYE2011

FYE2012

FYE2013

FYE2014

FYE2015

FYE2016

FYE2017

FYE2018

FYE2019

FYE2020

FYE2021

FYE2022

FYE2023

FYE2024

FYE2025

Acr

e-Fe

et p

er Y

ear

Recharge Demands

City of Ontario City of Chino City of Chino Hills City of Upland

City of Fontana CVWD MVWD City of Montclair

ProjectedActual

Inland Empire Utilites AgencyRecycled and Recharge Water Rate Study

FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

Historic and Projected Demands

Demands (AF) - Direct Usage Actual Projected

User FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 FYE 2015 FYE 2016 FYE 2017 FYE 2018 FYE 2019 3-Yr Avg % FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

City of Ontario 5,678 5,744 7,493 6,894 8,427 8,018 7,566 8,352 9,653 7,511 8,505 46% 10,080 10,309 10,309 10,309 10,309 10,538

City of Chino - Inc. SB County 8,408 7,724 9,721 10,364 10,527 9,695 7,753 6,712 6,742 4,922 6,125 33% 7,259 7,424 7,424 7,424 7,424 7,589

City of Chino Hills 1,494 1,612 1,566 1,890 2,002 1,827 1,394 1,837 1,857 1,548 1,747 9% 2,071 2,118 2,118 2,118 2,118 2,165

City of Upland - - - 264 869 636 719 654 695 709 686 4% 813 831 831 831 831 850

City of Fontana - - - - - - - 52 158 143 118 1% 139 143 143 143 143 146

CVWD 659 734 1,019 1,231 1,652 1,400 1,146 976 1,262 996 1,078 6% 1,278 1,307 1,307 1,307 1,307 1,336

City of Montclair 241 304 288 327 339 308 278 305 318 289 304 2% 360 369 369 369 369 377

Total AF Sold 16,480 16,116 20,087 20,969 23,816 21,884 18,856 18,888 20,684 16,118 18,564 100.00% 22,000 22,500 22,500 22,500 22,500 23,000

San Bernardino County 1,251 1,251 1,450 1,407 1,611 1,371 536 265 261 162

City of Chino 7,157 6,473 8,271 8,957 8,916 8,324 7,217 6,447 6,481 4,760

City of Chino Total 8,408 7,724 9,721 10,364 10,527 9,695 7,753 6,712 6,742 4,922

Demands (AF) - Recharge Actual Projected


City of Ontario 1,530 789 813 1,004 2,923 2,222 2,590 2,811 2,960 2,633 2,801 22% 3,049 3,093 3,137 3,314 3,314 3,314

City of Chino 682 827 856 1,057 1,397 1,076 1,264 1,397 1,446 1,244 1,362 11% 1,483 1,504 1,526 1,612 1,612 1,612

City of Chino Hills 611 719 736 910 1,193 912 1,065 1,179 1,214 1,018 1,137 9% 1,238 1,256 1,274 1,345 1,345 1,345

City of Upland 680 1,668 1,883 2,414 1,324 1,007 1,191 1,265 1,281 1,084 1,210 10% 1,317 1,336 1,355 1,431 1,431 1,431

City of Fontana 1,265 338 350 429 2,501 1,927 2,299 2,467 2,628 2,232 2,442 19% 2,658 2,697 2,735 2,889 2,889 2,889

CVWD 1,561 1,559 1,564 1,900 3,176 2,406 3,009 3,295 3,396 2,836 3,176 25% 3,456 3,507 3,557 3,757 3,757 3,757

City of Montclair 290 1,725 1,678 2,191 595 468 533 569 586 495 550 4% 599 607 616 651 651 651

Total AF Sold 6,619 7,625 7,880 9,905 13,108 10,017 11,951 12,984 13,510 11,542 12,679 100% 13,800 14,000 14,200 15,000 15,000 15,000

Demands (AF) - Total Actual Projected


City of Ontario 7,208 6,533 8,306 7,899 11,350 10,240 10,156 11,163 12,613 10,144 11,307 36% 13,129 13,402 13,447 13,623 13,623 13,852

City of Chino 9,090 8,551 10,577 11,421 11,923 10,770 9,017 8,109 8,188 6,166 7,488 24% 8,742 8,928 8,950 9,036 9,036 9,201

City of Chino Hills 2,105 2,330 2,303 2,800 3,194 2,739 2,459 3,016 3,071 2,566 2,884 9% 3,309 3,374 3,391 3,463 3,463 3,510

City of Upland 680 1,668 1,883 2,678 2,192 1,643 1,910 1,919 1,976 1,793 1,896 6% 2,130 2,167 2,186 2,263 2,263 2,281

City of Fontana 1,265 338 350 429 2,501 1,927 2,299 2,519 2,786 2,376 2,560 8% 2,798 2,839 2,878 3,032 3,032 3,035

CVWD 2,220 2,292 2,582 3,131 4,828 3,806 4,155 4,272 4,657 3,832 4,254 14% 4,734 4,813 4,863 5,064 5,064 5,093

City of Montclair 531 2,029 1,966 2,517 934 775 811 874 904 784 854 3% 959 976 984 1,019 1,019 1,027

Total AF Sold 23,099 23,741 27,967 30,875 36,923 31,901 30,806 31,872 34,194 27,660 31,242 100% 35,800 36,500 36,700 37,500 37,500 38,000


FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

Historic and Projected Demands

3-Year Rolling Average Total Demands

User FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

City of Ontario 11,962 12,225 13,326 13,491 13,564

City of Chino 7,699 7,946 8,873 8,971 9,007

City of Chino Hills 2,982 3,083 3,358 3,409 3,439

City of Upland 1,966 2,030 2,161 2,206 2,237

City of Fontana 2,653 2,671 2,838 2,917 2,981

CVWD 4,408 4,460 4,803 4,913 4,997

City of Montclair 882 906 973 993 1,008

Total AF Sold 32,552 33,320 36,333 36,900 37,233

Actual EDUs

User FYE 2019 % FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

City of Ontario 772,176 22.5% 22.5% 22.5% 22.5% 22.5% 22.5%

City of Chino 370,820 10.8% 10.8% 10.8% 10.8% 10.8% 10.8%

City of Chino Hills 305,993 8.9% 8.9% 8.9% 8.9% 8.9% 8.9%

City of Upland 318,093 9.3% 9.3% 9.3% 9.3% 9.3% 9.3%

City of Fontana 689,243 20.1% 20.1% 20.1% 20.1% 20.1% 20.1%

CVWD 825,343 24.1% 24.1% 24.1% 24.1% 24.1% 24.1%

City of Montclair 144,563 4.2% 4.2% 4.2% 4.2% 4.2% 4.2%

Total EDUs 3,426,229 100% 100.0% 100.0% 100.0% 100.0% 100.0%


DRAFT| OCTOBER 2019

Appendix B

FINANCIAL PROJECTIONS


Financial Forecast Summary

Table 1a Table 1b

All Values in $ Millions Direct Use Activity Recharge Activity

Presented totals may vary from sum of values above due to rounding for presentation purposes.

Recycled Water (WC) Fund 2020/21 2021/22 2022/23 2023/24 2024/25 2020/21 2021/22 2022/23 2023/24 2024/25

Sales Revenue

Recycled Water Sales w/o Increase $17.89 $17.98 $18.38 $18.38 $18.62 - - - - -

Adopted Increase 0.54 1.11 1.72 2.33 2.99 - - - - -

Recharge Sales w/o Increase - - - - - $0.84 $0.85 $0.90 $0.90 $0.90

Adopted Increase - - - - - 0.17 0.38 0.67 0.99 1.35

Total Sales Revenue 18.42$ 19.09$ 20.09$ 20.70$ 21.61$ 1.01$ 1.23$ 1.57$ 1.88$ 2.24$

Operating Revenue

Interest Revenue 0.95$ 0.94$ 1.23$ 1.36$ 1.44$ -$ -$ -$ -$ -$

JPA Cost Reimbursement - - - - - - - - - -

Total Operating Revenue 0.95$ 0.94$ 1.23$ 1.36$ 1.44$ -$ -$ -$ -$ -$

Non-Operating Revnue

Property Tax 2.17$ 2.17$ 2.17$ 2.17$ 2.17$ -$ -$ -$ -$ -$

Connection Fees 6.42 6.67 6.93 7.20 7.48 - - - - -

Loans 3.48 - - - - - - - - -

Grants 1.35 - - - - - - - - -

Capital Cost Reimb 0.09 0.09 0.09 0.09 0.10 - - - - -

Total Non-Operating Revenue 13.51$ 8.93$ 9.19$ 9.47$ 9.75$ -$ -$ -$ -$ -$

Operating Expense

Employment 4.46$ 4.79$ 5.02$ 5.24$ 5.70$ 0.91$ 0.92$ 0.92$ 0.92$ 0.93$

Utilities 2.88 2.97 3.06 3.15 3.25 - - - - -

Materials & Supplies 0.12 0.13 0.14 0.16 0.18 0.05 0.05 0.05 0.06 0.06

Other Expenses 3.00 2.65 2.57 2.61 3.11 (1)

0.28 0.34 0.40 0.36 0.31 (1)

Total Operating Expense 10.47$ 10.54$ 10.80$ 11.16$ 12.24$ 1.25$ 1.31$ 1.37$ 1.34$ 1.30$

Non-Operting Expense

Debt Service 12.12$ 12.47$ 14.42$ 15.41$ 14.68$ -$ -$ -$ -$ -$

Capital 2.30 1.50 5.31 4.00 3.96 - - - - -

Total Non-Operating Expense 14.42$ 13.97$ 19.73$ 19.41$ 18.64$ -$ -$ -$ -$ -$

Transfers In/(Out)

Capital Contribution (to GG ) (0.02)$ (0.01)$ (0.01)$ (0.02)$ (0.03)$ (2)

-$ -$ (0.01)$ (0.11)$ (0.22)$ (2)

Connection Fee Allocation (to WW, RW,GG) (4.53) (1.39) (1.25) (2.45) (0.72) (3)

- - - - -

Debt Service (from RC, RO) 2.54 2.54 2.54 2.67 2.67 (4)

- - - - -

Operating Support (to GG) (0.05) (0.01) (0.04) (0.03) (0.00) (5)

(0.71) (0.75) (0.78) (0.81) (0.87) (5)

Total Transfers In/(Out) (2.05)$ 1.13$ 1.24$ 0.17$ 1.91$ (0.71)$ (0.75)$ (0.79)$ (0.92)$ (1.08)$

(1) Other Expenses include contract work and special projects, professional fees and services, and other administrative and miscellaneous expenses.

(2) WC fund contributes 3.4% of GG fund capital project costs and IEUAs share of RW fund capital expense

(3) WC fund allocates a portion of connection fee receipts for project costs that support investments in integrated water resource management

(4) Regional funds support a portion debt service costs in the WC and RW funds

(5) WC fund supports 3.4% operating project costs in the GG fund and basin maintenance expense in the RW fund per the Peace I and II agreements with CBWM.

Recycled Water (WC) Fund - This fund accounts for direct use activities and a portion of recharge

water activity



Table 2

All Values in $ Millions Recharge Activity Reimbursement agreement


Recharge Water (RW) Fund Recharge Activity 2020/21 2021/22 2022/23 2023/24 2024/25

Sales Revenue

Recycled Water Sales w/o Increase - - - - -

Adopted Increase - - - - -

Recharge Sales w/o Increase - - - - -


Total Sales Revenue -$ -$ -$ -$ -$

Operating Revenue

Interest Revenue 0.16$ 0.19$ 0.20$ 0.20$ 0.20$

JPA Cost Reimbursement 1.08 1.11 1.14 1.18 1.21

Total Operating Revenue 1.24$ 1.30$ 1.34$ 1.37$ 1.41$


Property Tax -$ -$ -$ -$ -$

Connection Fees - - - - -

Loans 3.76 0.14 - - -

Grants 11.52 - - - -

Capital Cost Reimb 0.66 0.94 1.06 1.19 1.31

Total Non-Operating Revenue 15.95$ 1.08$ 1.06$ 1.19$ 1.31$

Operating Expense

Employment 0.68$ 0.72$ 0.75$ 0.78$ 0.83$

Utilities 0.07 0.07 0.07 0.08 0.08

Materials & Supplies 0.10 0.10 0.11 0.11 0.11

Other Expenses 0.94 0.96 0.99 1.02 1.05 (1)

Total Operating Expense 1.79$ 1.85$ 1.92$ 1.99$ 2.07$


Debt Service 1.32$ 1.51$ 1.50$ 1.50$ 1.50$

Capital 13.18 0.29 0.50 0.75 1.00

Total Non-Operating Expense 14.51$ 1.80$ 2.00$ 2.25$ 2.50$

Transfers In/(Out)

Capital Contribution (from WC) -$ -$ 0.01$ 0.11$ 0.22$ (2)

Connection Fee Allocation (from WC) 3.03 0.07 0.12 0.17 0.23 (3)

Debt Service (from RC) 0.66 0.69 0.69 0.69 0.69 (4)

Operating Support (from WC) 0.71 0.75 0.78 0.81 0.87 (5)

Total Transfers In/(Out) 4.40$ 1.51$ 1.59$ 1.78$ 2.00$






Recharge Water (RW) Fund - Accounts for basin activities as part of the joint agreement with Chino Basin

Watermaster, San Bernardino County Flood Control District, and Chino Basin Water Conservation District



Table 1b and Table 2

All Values in $ Millions Direct use and total Recharge Activity


Combined (WC and RW funds) Recharge Water Activity 2020/21 2021/22 2022/23 2023/24 2024/25

Sales Revenue

Recycled Water Sales w/o Increase - - - - -


Recharge Sales w/o Increase $0.84 $0.85 $0.90 $0.90 $0.90

Adopted Increase 0.17 0.38 0.67 0.99 1.35

Total Sales Revenue 1.01$ 1.23$ 1.57$ 1.89$ 2.25$

Operating Revenue

Interest Revenue 0.16$ 0.19$ 0.20$ 0.20$ 0.20$

JPA Cost Reimbursement 1.08 1.11 1.14 1.18 1.21

Total Operating Revenue 1.24$ 1.30$ 1.34$ 1.37$ 1.41$


Property Tax -$ -$ -$ -$ -$

Connection Fees - - - - -

Loans 3.76 0.14 - - -

Grants 11.52 - - - -

Capital Cost Reimb 0.66 0.94 1.06 1.19 1.31

Total Non-Operating Revenue 15.95$ 1.08$ 1.06$ 1.19$ 1.31$

Operating Expense

Employment 1.59$ 1.64$ 1.67$ 1.70$ 1.76$

Utilities 0.07 0.07 0.07 0.08 0.08

Materials & Supplies 0.15 0.15 0.16 0.17 0.17

Other Expenses 1.22 1.30 1.39 1.38 1.36 (1)

Total Operating Expense 3.04$ 3.16$ 3.29$ 3.33$ 3.37$


Debt Service 1.32$ 1.51$ 1.50$ 1.50$ 1.50$

Capital 13.18 0.29 0.50 0.75 1.00

Total Non-Operating Expense 14.51$ 1.80$ 2.00$ 2.25$ 2.50$

Transfers In/(Out)

Capital Contribution (from WC) -$ -$ 0.01$ 0.11$ 0.22$ (2)

Connection Fee Allocation (from WC) 3.03 0.07 0.12 0.17 0.23 (3)

Debt Service (from RC) 0.66 0.69 0.69 0.69 0.69 (4)

Operating Support (from WC) 0.71 0.75 0.78 0.81 0.87 (5)

Total Transfers In/(Out) 4.40$ 1.51$ 1.59$ 1.78$ 2.00$






Combined WC fund (Recharge water expense) and RW fund activity


DRAFT| OCTOBER 2019

Appendix C

CAPITAL PROJECTS

Inland Empire Utilites AgencyRecycled and Recharge Water Rate StudyCapital Improvement Projects (CIP)

Project

NumberProject Title Note

Growth -

One WaterReplacement FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

Recharge Water Fund - RW - Capital Projects

EN22008 GWR Asset Management Overall MEU Growth 23% 77% -$ 250,000$ 500,000$ 750,000$ 1,000,000$

IS21008 GWR Infrastracture Replacement Project Overall MEU Growth 23% 77% 30,000$ -$ -$ -$ -$

RW15003 Recharge Master Plan Update Projects Overall MEU Growth 23% 77% 9,750,000$ 40,041$ -$ -$ -$

RW15004 Lower Day Basin RMPU Improvements Overall MEU Growth 23% 77% 3,404,044$ -$ -$ -$ -$

Recharge Water Fund - RW - Capital Projects 13,184,044$ 290,041$ 500,000$ 750,000$ 1,000,000$

Recycled Water Fund - WC - Capital Projects

EN15002 1158 Reservoir Site Cleanup Overall MEU Growth 23% 77% 1,000,000$ -$ -$ -$ -$

EN17032 RP-4 Outfall Repair from Mission Blvd to Overall MEU Growth 23% 77% -$ 1,000,000$ 4,000,000$ -$ -$

EN19003 RP-1 Outfall Parallel Line Overall MEU Growth 23% 77% -$ -$ 230,000$ 1,925,000$ 960,000$

EN22009 WC Asset Management Overall MEU Growth 23% 77% -$ 500,000$ 1,000,000$ 2,000,000$ 3,000,000$

EN20022 1299 Reservoir Paint/Coating Repairs and No Growth Allocation 0% 100% 100,000$

EN22004 1158 East Reservoir Re-coating/painting No Growth Allocation 0% 100% 1,200,000$

EN24005 1630 West Reservoir Paint/Coating Repair No Growth Allocation 0% 100% 75,000$

EN24006 930 Reservoir Paint/Coating Repairs and No Growth Allocation 0% 100% 75,000$

Subtotal Recycled Water Fund - WC - Capital Projects 2,300,000$ 1,500,000$ 5,305,000$ 4,000,000$ 3,960,000$

Inland Empire Utilites AgencyRecycled and Recharge Water Rate StudyCapital Improvement Projects (CIP)

Project

NumberProject Title Note

Growth -

One WaterReplacement FYE 2021 FYE 2022 FYE 2023 FYE 2024 FYE 2025

Recycled Water Fund - WC - Contract Work/Special Projects

EN16035 WC Planning Documents Overall MEU Growth 23% 77% 250,000$ 250,000$ 250,000$ 250,000$ 500,000$

EN18021 Prado Basin AMP Annual Monitoring No Growth Allocation 0% 100% 100,000$ 100,000$ 100,000$ 100,000$ 100,000$

EN19030 WC Asset Management (Assessment Only) No Growth Allocation 0% 100% 250,000$ 250,000$ 250,000$ 250,000$ 250,000$

EN20017 WC Emergency O&M Projects FY 19/20 No Growth Allocation 0% 100% 150,000$ 150,000$ 150,000$ 150,000$ 150,000$

EN20031 Recycled Water Program Strategy 2020 Overall MEU Growth 23% 77% 250,000$ -$ -$ -$ -$

EN20049 Reservoir Maintenance (Repair/Improve) No Growth Allocation 0% 100% 50,000$ -$ -$ -$ -$

EN20050 Reservoir Maintenance (Access) No Growth Allocation 0% 100% -$ -$ 20,000$ -$ -$

EN21036 WC On Call/ Small Projects 20/21 No Growth Allocation 0% 100% 150,000$ 150,000$ 150,000$ 150,000$ 150,000$

EN25031 Recycled Water Program Strategy 2025 Overall MEU Growth 23% 77% -$ -$ -$ -$ 250,000$

WR16001 Water Softener Removal Rebate Program Overall MEU Growth 23% 77% 75,000$ 75,000$ 75,000$ 75,000$ 75,000$

WR20029 Upper SAR HCP & Integrated Model-Recycled Water BenefitsOverall MEU Growth 23% 77% 90,000$ 88,000$ -$ -$ -$

Subtotal Recycled Water Fund - WC - Contract Work/Special Projects 1,365,000$ 1,063,000$ 995,000$ 975,000$ 1,475,000$

Total Recycled Water Fund - WC 3,665,000$ 2,563,000$ 6,300,000$ 4,975,000$ 5,435,000$

Recharge Water (RW) One Water Connection Fee Eligible Projects Cost 3,032,330$ 66,709$ 115,000$ 172,500$ 230,000$

Recycled Water (WC) One Water Connection Fee Eligible Projects Cost 382,950$ 439,990$ 1,277,650$ 977,500$ 1,100,550$

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